Skip to main content

tv   BBC World News  WHUT  July 29, 2011 7:00am-7:30am EDT

7:00 am
>> this is "bbc world news." funding for this presentation is made possible by the freeman foundation of new york, stowe, vermont, and honolulu. newman's own foundation. and union bank. >> union bank has put its global expertise to work for a
7:01 am
wide range of companies. what can we do for you? >> and now, "bbc world news." >> norway begins to bury its victim's exactly one week after the oslo attack. the man who confessed to the bombing is question bed again by the police. labour party activists mourn the young people killed in the attack. the country's prime minister will address the people. >> welcome to gmt i am naga munchetty. also in the program, another deal falls by the wayside,
7:02 am
putting more pressure on u.s. lawmakers to agree to a plan to avoid a debt default. a blow to the libyan rebels as their most senior military commander was assassinated. it is midday in london, 7:00 a.m. in washington, and 1:00 p.m. in norway, where anders breivik, the man who admitted to carrying out the bomb attack and shooting spree last friday has been questioned again by police. the funerals of his victims are taking place. most of those killed were young activists. we can show you the scene of the service taking place at the labor party headquarters. political figures, including the prime minister, will pay their respects at this special memorial service. >> in other news, the clock is
7:03 am
ticking. four days left for the american congress to work out the compromise deal on the u.s. debt limit. a vote on a republican bill to raise the debt ceiling, cut spending, and avoid a default was delayed. it will be put forward again later. here is our washington correspondent, steve kingston. >> this was along this day for john boehner, the most powerful republican on capitol hill. he had hoped to the house of representatives would back his plan to cut the deficit and raise the debt ceiling. some on his own side remain unconvinced. as night fell, the critical vote was postponed. in the senate, democrats were trying to keep a straight face. >> i apologize to everyone for the late hour. we have been waiting for the house to conduct their business. they are having trouble conducting it. >> @ the white house, barack obama is a concerned spectator. it's for congress to decide if he can break the $14 trillion
7:04 am
debt ceiling. this may make for remitting political theater, but it leaves american no closer -- this may make for reading political theater, but it leaves america no closer to solving its debt problem. >> it means impossible choices. will they prioritize day to day expenses, pensions, government salaries, or the interest payments owed to creditors, including foreign governments like china? treasury officials plan for the worse. many believe a default would threaten america's pre-eminence in the world. >> it would probably entail a decline in the dollar relative to other currencies and probably doubts in the minds of those people who reserve currencies as to whether the dollar is effectively the prime currency of reserves. >> as the clock ticks, global stock markets are showing strain.
7:05 am
the washington this function is everyone's problem. >> we will get more on the u.s. debt issue later in the program. first, let's take you back to oslo, where prime minister jens stoltenberg is speaking. there will also be a minute of silence. we can hear what he has to say now. >> [speaking foreign language] our young people -- it was a vicious attack on our common values. the last time we were gathered here, it was our annual meeting. we were singing songs, planning our actions, discussing politics. the building was full of political debate.
7:06 am
>> [speaking foreign language] >> and political engagement. we were a political workshop. we were ourselves, the labor party. today we gather again, but this time we are gathered -- we are heartbroken, in despair. the attacks hurt our movement. many of our most finest young people are dead and no longer with us. they have a future ahead of them. they were robbed of their lives. many people are wounded in a hospital and even more people are having wounds which are not visible. they are bleeding and bleeding.
7:07 am
it is difficult, impossible, to comprehend what these young people went through during the gruesome hours. we have to go on and live with a burden of the 22nd of july. it will be hard and it will be difficult. together, in unity, we will manage. there are so many heroes after last friday, from the emergency services, from the volunteers, from local people. lycee thank you to all of them. -- we say thank you to all of them. first of all, i would like to say thank you to the young people in our youth division. we're not going to be shocked and intimidated into silence. the bravery that these young
7:08 am
people have shown is catching. .'m losing the feed [no audio] >> we are going to answer hatred would love -- hatred with love. we are going to honor our heroes forever. we are going to show that our movement is capable of showing compassion. all these -- these many people without visible wounds that are hurting and we are going to show them our compassion, too.
7:09 am
to the young people today i will say, you are not alone. our movement is the shoulder that you can cry on, the spine, the back you can rest against, the hand you can hold. it is our promise to you. one thing i'm sure of, one thing i am convinced of, after this a much stronger unity will arise. we are going to honor and celebrate our heroes. most of all, we are going to
7:10 am
stay true to our ideas and our values and guard against them. we stand for fundamental democratic values. we are going to stand up and protect our values, like our forefathers have done before us. we are going to have more democracy and more participation as our response. that will be hard memorial for all those who lost their lives. we remember in silence those who lost their lives.
7:11 am
>> [speaking foreign language] >> a minute of silence has just taken place, led by norway's prime minister jens stoltenberg. he has been paying his respects at this special memorial service in oslo today. later on, the leader of the labour party's youth
7:12 am
organization will also hold a memorial speech. we return to our main story now and that's the deadlock over the u.s. national debt. we speak to jake sherman, eight congressional reporter for politico -- jake sherman, a congressional reporter for does this mean that the cracks are showing? does this mean there's desperation in the air? >> more than ever. house speaker john boehner, president obama's chief antagonist, has not been able to get his troops around his proposal, which cuts more than $1 trillion in federal spending over the next 10 years and raises the debt ceiling. he has delayed the vote on this twice. he will try to bring it up again today. this is a real test for him and
7:13 am
american lawmakers, if they can get together in this era of divided government. no one knows the way out of the woods. the united states senate has indicated that the bill they are fighting over is dead on arrival in the senate. we are really four days from a huge disaster and no one knows the way out of the woods. >> what about president obama? it does not seem like he has shown his full hand get. >> that's what republicans have said. he was engaged in negotiations with house speaker john boehner for weeks and weeks and weeks over big proposals to cut $4 trillion in spending and remake the way america collects taxes. mr. boehner fell pressure from consumer lives -- boehner felt
7:14 am
pressure from consumerconservats and walked away. he did get involved. now he is kind of out of the room and is a mere spectator, as you indicated. >> at the end of the day, it looks like the debt ceiling will be raised. it has happened three times during the obama administration. >> yes, this is a strange fight for american lawmakers. in the past, the debt ceiling was raised routinely on the backs of other pieces of legislation. the so-called tea party republicans, who were elected as the referendum against obama and the democrats', said they would never raise the debt ceiling. that's the problem mr. boehner is facing. they have had months to get their troops ready for this. they are close. there's only a handful of votes away -- they are only a handful
7:15 am
of votes away. the people elected in 2010 were elected on the single platform of not raising the debt ceiling. it has been an uphill battle for mr. boehner. you're absolutely right. they all recognize that need to raise the debt ceiling. i'm not sure when it's going to happen. i'm not sure if they know when it will happen. they are hopeful it will be today, but they've been saying that for the last two days. we will have to wait and see. >> always good to speak to you. thank you very much. >> thank you. >> take a look at some of the other stories making headlines today. still to come, how is pakistan rebuilding after devastation? >> one country in the heart of europe appears to be immune to
7:16 am
the currency crisis. switzerland's frank is rising high and it has become a haven for investors. how helpful is that in this economy? >> the landscape has attracted tourists for over a century. this year, visitors are counting their pennies. euro slides and the swiss franc rises. foreign tourists find switzerland too expensive. >> [speaking foreign language] >> i am watching the situation with enormous concern. things have gotten or sign the last few months. jobs and businesses are really in danger now and that's really bad for our local economy. >> the swiss franc is at an all- time high against the euro. a new study shows that 1000
7:17 am
hotels across the swiss south are threatened with closure. >> there have been job cuts. each of the hotels have already had to cut back on jobs. we have cut two positions. >> hotel owners are looking anxiously to the government for solutions. so far, in vain. an attempt by the swiss national bank to buy out euros and slow down the rise of the swiss franc quickly resulted in the swiss bank losing over $20 billion. while the crisis in the eurozone continues, the swiss franc will remain a safe haven and there's little switzerland can do about it. >> you are watching gmt from "bbc world news." i am naga munchetty.
7:18 am
police in norway interrogate mass killer anders breivik for a second time as the first funerals take place one week after the attack. the united states fails to agree on how to solve the debt crisis, rattling global markets. we can get more on how investors are reacting to the u.s. debt crisis and it is not just over there that investors have concerns. >> the crisis of the eurozone is raising its ugly head. as we have been reporting, four days to go until the deadline and u.s. lawmakers appear no closer. as we have been reporting, the republican house speaker cancelled a vote late on thursday pretty much after failing to muster enough support within his party. all of this is causing great concern in asia, where china
7:19 am
owns over $1 trillion in u.s. debt. one beijing-based expert explains. >> china is the largest holder of u.s. treasury debt. they have managed to rack up more than $1 trillion in u.s. treasury securities. if the u.s. treasury, god forbid, defaults on that debt, if there's a downgrade by the ratings agencies, or even if the market starts to move against it, that will be a serious hit for the value of chinese foreign-exchange reserves. foreign-lly, china's currency reserves. just to recap, they have an awful lot of those currency reserves tied up in the u.s. dollar. we mentioned the eurozone. prime minister of spain has brought forward its countries general election. voters will go to the polls on november 20, four months earlier
7:20 am
than planned. the announcement after moody's put the country on standby for a debt rating downgrade. says the eu's bailout scheme is likely to increase the risk to bondholders. it held off inflicting an actual cut for now. has downgraded the ratings of six spanish ratings -- six spanish regions by one notch. let's update you on some of the latest results today. eads reported a 41% decline in first half net profits. stronger sales were offset by lower revenue from its defense unit and a weaker dollar is having a big impact. the french energy giant has reported a 6% drop in the second quarter. income fell to $4 billion.
7:21 am
iag, the owner of british airways, had a pretax profit, $56 million, and pick up in demand helping to compensate higher fuel costs. full-year pretax profit fell by 15%, 0 $1.6 billion. investors are focusing on a surge in its operating profit and a 20% increase in a dividend boost. the firm announced its keeping rupert murdoch's son, james, on as chairman. a quick look at the markets. just want to show you the currency markets. we only have four days to go until the debt deadline hits.
7:22 am
gold is still above the $1,600 a troy ounce mark. that's what the asian markets have been doing today. one big story -- the worry over the u.s. especially for japan, the weaker dollar means a stronger yen and at its corporate japan like nothing else. it's a big problem at the moment. >> good to see him appear get its -- good to see you. general abdel fattah younes was shot dead by what has been described as an armed gang as he prepared to appear before a judicial committee. the identity and motive of the gang has not been disclosed. our world affairs correspondent sent this report. >> in the early moments of this complex, the front lines in eastern libya were constantly shifting. one morning on the road to b rega, the commander showed up,
7:23 am
boosting morale. general abdel fattah younes was an important defector from colonel gaddafi's regime. the rebel fighters saw yones as a beacon of hope on that day in april. the general's visit is important to us all -- one of them said. nearly 42 years ago, he helped colonel gaddafi overthrow the libyan monarchy in the coup of 1969. yones became the interior minister, a close aide. he switched sides when the uprising began in benghazi and came to the aid of the rebels in what was his home city. last night, it was announced that general younes had been killed. >> general younes and two of his comrades were shot by armed individuals after he was requested to stand before a judicial committee. >> the circumstances of the
7:24 am
killing have yet to be properly explained. there's plenty of rumors and suspicion swirling around, although the opposition leaders insist younes' death will not throw their rebellion of course. >> i have to admit that this is a blow to the movement and to the revolution, but it is not detrimental. this is going to make the revolution and make the people of libya be much more determined to get rid of muammar gaddafi. >> amid the chaos, there is still something of a military stalemate in libya. the killing of general younes has come at a critical time. the rebels need to prove said they have the ability to run the country.
7:25 am
. >> in july 2010, floods devastated pakistan, killing almost two thousand people. some 20 million people are thought to a been affected across the country. the floods followed heavy rain in the northwest of pakistan. our colleagues have been speaking to some of the children left homeless by the flooding. this is the story of one of them who lives in a camp near karachi with her father. >> [speaking foreign language] [speaking foreign language]
7:26 am
[speaking foreign language] [speaking foreign language] [speaking foreign language] >> that is all for the moment from gmt. stay with us on "bbc world news."
7:27 am
there's plenty more to come. i will >> make sense oftial news at >> funding was made possible by the freeman foundation of new york, stowe, vermont, and honolulu. newman's own foundation. and union bank.
7:28 am
>> union bank has put its global financial strength to work for a range of compie what can we do for you? >> "bbc world news america" was presented by kcet los angeles.
7:29 am